September 30,2006
September 30,2005
September 30,2006
September 30,2005
INCOME AND EXPENSES FROM OPERATIONS
1. Interest Income 1.1. Interest income
a. Rupiah 16,938,225
12,004,796 17,674,623
12,752,121 b. Foreign currencies
1,593,594 1,714,268
1,708,229 1,783,564
1.2. Fees and commissions on loan facilities a. Rupiah
376,183 372,924
376,183 372,924
b. Foreign currencies 61,108
59,085 67,817
80,342 TOTAL INTEREST INCOME
18,969,110 14,151,073
19,826,852 14,988,951
2. Interest expenses 2.1. Interest expense
a. Rupiah 10,683,610
6,631,211 11,039,127
6,937,067 b. Foreign currencies
1,255,336 1,102,533
1,310,569 1,134,804
2.2. Fees and commissions -
139 -
20,105 TOTAL INTEREST EXPENSE - -
11,938,946 7,733,883
12,349,696 8,091,976
NET INTEREST INCOME 7,030,164
6,417,190 7,477,156
6,896,975
3. Other operating income 3.1. Other fees and commissions
1,084,081 1,014,546
1,228,143 1,130,349
3.2. Foreign exchange gain 312,648
239,221 312,692
249,905 3.3. a. Gain from sale of securities and Government Recapitalization Bonds
53,891 223,823
80,356 203,116
b. Gain from increase in value of securities and Government Recapitalization Bonds
87,464 -
86,059 -
3.4. Others
374,892 472,184
341,571 511,025
TOTAL OTHER OPERATING INCOME 1,912,976
1,949,774 2,048,821
2,094,395
4. Provision for possible losses on earning assets 2,881,526
2,739,139 2,967,100
2,853,511 5. Addition reversal of estimated losses on commitments and contingencies
3,382 95,040
16,764 63,171
6. Reversal for possible losses on others 12,448
536,938 12,448
536,938 7. Other operating expenses
7.1. General and administrative expenses 1,798,274
1,861,212 2,015,635
2,035,102 7.2. Salaries and employee benefits
1,932,909 1,756,165
2,148,042 1,946,330
7.3. a. Losses from sale of securities and Government Recapitalization Bonds -
- -
- b. Losses from decline in value of securities and Government
Recapitalization Bonds -
103,812 -
103,812 7.4. Foreign exchange losses
- -
- -
7.5. Promotion expenses 195,490
187,720 219,458
203,021 7.6.
Others 402,994
427,452 432,441
462,459 TOTAL OTHER OPERATING EXPENSES - -
4,329,667 4,336,361
4,815,576 4,750,724
PROFIT FROM OPERATIONS 1,747,777
1,923,442 1,772,513
1,987,244 NON-OPERATING INCOME AND EXPENSES
8. Non-operating income 38,570
29,494 48,844
38,472 9. Non-operating expenses
21,028 48,664
22,837 57,067
NON OPERATING INCOME EXPENSES - NET 17,542
19,170 26,007
18,595
10. Extraordinary income expenses -
- -
- 11. PROFIT BEFORE INCOME TAX
1,765,319 1,904,272
1,798,520 1,968,649
12. Estimated income tax expense - - - Current
259,939 220,377
292,748 292,939
- Deferred 318,819
457,774 318,819
448,963 13. PROFIT BEFORE MINORITY INTERESTS
1,186,561 1,226,121
1,186,953 1,226,747
14. Minority interests -
- 392
626 15. Retained earnings beginning of the year
4,005,436 6,161,275
4,005,436 6,161,275
16. a. Dividend 301,685
2,627,816 301,685
2,627,816 b. Others
12,066 105,112
12,066 105,112
17. RETAINED EARNINGS ENDING OF THE YEAR 4,878,246
4,654,468 4,878,246
4,654,468 18. EARNINGS PER SHARE full amount
- Basic
- -
58.44 60.84
- Dilluted
- -
57.93 60.60
Presented as a net of gains losses from foreign exchange transactions. Presented as a net of gains losses from increase decrease in value of Securities and Government Bonds.
DESCRIPTION NO
In Millions of Rupiah
BANK CONSOLIDATED
September 30,2006
September 30,2005
September 30,2006
September 30,2005
COMMITMENTS Commitment
Receivables
1. Unused fund borrowings facilities
a. Rupiah -
- -
- b. Foreign currencies
- -
- -
2. Others
- -
- -
Total Commitment Receivables -
- -
- Commitment Payables
1. Unused loan facilities granted
a. Rupiah 18,064,711
17,523,644 18,166,907
17,575,214 b. Foreign currencies
2,248,716 2,961,599
2,250,367 2,961,599
2. Outstanding irrevocable letters of credit
4,195,492 5,492,206
4,471,007 5,810,189
3. Others
- -
- -
Total Commitment Payables 24,508,919
25,977,449 24,888,281
26,347,002 COMMITMENTS - NET
24,508,919 25,977,449
24,888,281 26,347,002
CONTINGENCIES Contingent
Receivables
1. Guarantees received
a. Rupiah 188,727
184,778 188,727
184,778 b. Foreign currencies
2,067,852 2,084,439
2,070,342 2,087,217
2. Unrecognized interest income
a. Rupiah 3,682,640
2,286,503 3,682,861
2,286,503 b. Foreign currencies
2,548,107 1,253,720
2,548,112 1,253,720
3. Others
32,741 32,949
32,741 32,949
Total Contingent Receivables 8,520,067
5,842,389 8,522,783
5,845,167 Contingent Payables
1. Guarantees issued
a. Bank guarantees - Rupiah
3,561,654 3,477,112
3,625,089 3,590,766
- Foreign currencies 8,026,916
9,564,724 8,094,065
9,665,082 b. Others
- -
- -
2. Outstanding revocable letters of credit
- -
- -
3. Others
40,196 112,683
38,133 112,683
Total Contingent Payables 11,628,766
13,154,519 11,757,287
13,368,531 CONTINGENCIES - NET
3,108,699 7,312,130
3,234,504 7,523,364
In Millions of Rupiah
NO STATEMENTS OF COMMITMENTS AND CONTINGENCIES
BANK CONSOLIDATED
DESCRIPTION As of September 30, 2006 and 2005
85
Board of Commissioners
- Chairman : Edwin Gerungan
S. E O - Deputy Chairman
: Muchayat Board of Directors
- Commissioner : Soedarjono
PT Bank Mandiri Persero Tbk.
- Commissioner : Richard Claproth
- Independent Commissioner : Pradjoto
- Independent Commissioner : Gunarni Soeworo
- Independent Commissioner : Yap Tjay Soen
Board of Directors
- President Director : Agus Martowardojo
- Deputy President Director : Wayan Agus Mertayasa
- Director : Omar Sjawaldy Anwar
- Director : Zulkifli Zaini
- Director : Abdul Rachman
- Director :
Sasmita - Director
: Sentot A. Sentausa - Director
: Bambang Setiawan - Director
: Riswinandi
- Director : Thomas Arifin
- Director : Budi Gunadi Sadikin
acting as independent commissioner acting as compliance director
1 The above financial information as of and for the nine months ended September 30, 2006 unreviewed and 2005 reviewed is derived from the consolidated financial statements.
As the financial information is derived from the consolidated financial statements, it does not provide a complete presentation of all disclosures that are included in the consolidated financial statements.
2 The consolidated financial statements as of and for the nine months period ended September 30,2006 was not reviewed and the consolidated financial statements as of and for the nine months period ended September 30, 2005
have been reviewed by public accounting firm Purwantono, Sarwoko Sandjaja Prasetio, Sarwoko Sandjaja, a member of Ernst Young Global Partner In-charge is Drs. Soemarso SR ME with unqualified opinion in their report dated November 18, 2005.
3 The above financial information is presented in accordance with the following stipulations:
a Bank Indonesias Regulation No. 322PBI2001 dated December 13, 2001 as amanded by Bank Indonesias Regulation No. 750PBI2005 dated November 29, 2005 regarding Transparency of Banks Financial Condition. b Bank Indonesia’s Circular Letter No. 710DPNP dated March 31, 2005 regarding the amendment of Bank Indonesias Circular Letter No. 330DPNP dated December 14, 2001 concerning
Presentation of Quarterly and Monthly Published Financial Statements of Commercial Banks and Certain Report Submitted to Bank Indonesia. c Bank Indonesias Regulation No. 47PBI2002 dated September 27, 2002 regarding Prudential Principles for Purchase of Credit by Commercial Banks from the Indonesian Banks
Restructuring Agency IBRA. d Bank Indonesias Letter No. 5559DPNPIDPnP dated December 24, 2003 regarding Banks Published Financial Statements.
e Rule X.K.2, Decision of Chairman of the Capital Market Supervisory Agency Bapepam, Attachment No. Kep-36PM2003 dated September 30, 2003 regarding Obligation to Submit Periodic Financial Statements 4
Bank assessed asset quality rating based on Bank Indonesias Regulation No. 72PBI2005 dated January 20, 2005, as amanded by Bank Indonesias Regulation No. 82PBI2006 dated January 30, 2006 regarding change in PBI 7, which among others required the Bank to apply the asset quality designated by Bank Indonesia, in the event of difference in assessment of asset quality between Bank and Bank Indonesia and other consideration such
as classification determined by other commercial banks on the earning assets given by more than one bank and availiability of audited financial statements. 5
For comparative purposes, certain accounts in the financial information as of and for the nine months ended September 30, 2005 have been reclassified to conform with the presentation of accounts in the financial information as of and for the nine months September 30, 2006.
6 Exchange rate of 1 US Dollar as of September 30, 2006 and 2005 was Rp 9,225 and Rp 10,290 respectively.
7 Basic and diluted earnings per share are calculated by dividing the net profit with the weighted average number of shares issued and fully paid during the period, after considering the effects
of stock options.
Wayan Agus Mertayasa
Republic of Indonesia : 68.90 Ultimate Shareholders
JP Morgan Chase Bank US Resident Norbax Inc : 6.33
Public : 24.77
Agus Martowardojo President Director
Deputy President Director SHAREHOLDER
86
SPECIAL SUB
SPECIAL SUB
MENTION STANDARD
MENTION STANDARD
I Related Parties
A EARNING ASSETS
1 Placement with other banks
129,150 -
- -
- 129,150
269,989 -
- -
- 269,989
2 Securities
91,153,138 -
- -
10,000 91,163,138
92,627,877 -
- -
10,000 92,637,877
3 Loan to related parties
679,885 -
6,000 -
203,252 889,137
982,942 32
6,000 -
390,791 1,379,765
a. Small scale business credit KUK
- -
- -
- -
- -
- -
- -
b. Property Loans
4,275 -
- -
- 4,275
11,035 -
- -
- 11,035
i. Restructured 3,500
- -
- -
3,500 10,500
- -
- -
10,500 ii. Unrestructured
775 -
- -
- 775
535 -
- -
- 535
c. Other restructured loans
237,712 -
- -
- 237,712
138,703 -
- -
148,793 287,496
d. Others
437,898 -
6,000 -
203,252 647,150
833,204 32
6,000 -
241,998 1,081,234
4 Investment in shares of stock to related parties
2,124,747 -
- -
- 2,124,747
2,026,168 -
- -
5,159 2,031,327
a. In bank financial institutions
1,224,831 -
- -
- 1,224,831
1,194,001 -
- -
- 1,194,001
b. In non bank financial institutions
749,719 -
- -
- 749,719
643,780 -
- -
5,159 648,939
c. Due to loan restructuring
- -
- -
- -
- -
- -
- -
d. Others
150,197 -
- -
- 150,197
188,387 -
- -
- 188,387
5 Other receivables to related parties
- -
- -
- -
34,115 -
1,135 -
50 35,300
6 Commitments and contingencies to related parties
5,532 -
- -
- 5,532
27,730 -
- -
- 27,730
B NON EARNING ASSETS
1 Abandoned properties
- -
- -
- -
- -
- -
- -
2 Repossessed Assets
- -
- -
- -
- -
- -
- -
3 Interbranch and suspense account
- -
- -
- -
- -
- -
- -
II Third Parties
A EARNING ASSETS
1 Placement with other banks
14,012,038 -
- -
- 14,012,038
14,438,649 -
- -
- 14,438,649
2 Securities issued by Bank Indonesia and third parties
9,813,694 -
13,643 -
1,070,684 10,898,021
1,978,507 -
180,873 -
1,093,831 3,253,211
3 Loan to third parties
62,933,758 10,991,294
3,817,606 1,931,770
20,289,085 99,963,513
58,373,663 16,454,105
7,292,493 5,280,407
11,485,409 98,886,077
a. Small scale business credit KUK
3,404,107 716,597
160,305 84,614
362,755 4,728,378
3,630,331 541,007
28,973 30,955
400,052 4,631,318
b. Property Loans
7,183,724 2,042,335
358,195 688,534
1,297,889 11,570,677
1,711,661 1,093,031
790,206 300
159,035 3,754,233
i. Restructured 156,317
205,570 61,411
- 173,280
596,578 234,295
446,991 88,846
- -
770,132 ii. Unrestructured
7,027,407 1,836,765
296,784 688,534
1,124,609 10,974,099
1,477,366 646,040
701,360 300
159,035 2,984,101
c. Other restructured loans
5,046,925 2,428,562
1,069,812 278,395
7,147,964 15,971,658
5,356,722 4,740,863
2,835,633 2,889,730
4,024,652 19,847,600
d. Others
47,299,002 5,803,800
2,229,294 880,227
11,480,477 67,692,800
47,674,949 10,079,204
3,637,681 2,359,422
6,901,670 70,652,926
4 Investment in shares of stock of third parties
4,956 -
- -
72,626 77,582
4,955 -
- -
72,625 77,580
a. In bank financial institutions
- -
- -
- -
- -
- -
- -
b. In non bank financial institutions
- -
- -
1 1
- -
- -
- -
c. Due to loan restructuring
- -
- -
72,625 72,625
- -
- -
72,625 72,625
d. Others
4,956 -
- -
- 4,956
4,955 -
- -
- 4,955
5 Other receivables from third parties
4,233,301 798,949
134,031 31,032
852,738 6,050,051
5,333,032 2,147,702
1,047,035 179,151
1,127,825 9,834,745
6 Commitments and contingencies to third parties
14,976,946 480,749
137,127 13,231
170,477 15,778,530
16,712,267 1,315,640
332,718 100,877
44,810 18,506,312
B NON EARNING ASSETS
1 Abandoned properties
- -
- -
- 442,933
- -
- -
- 269,881
2 Repossessed Assets
- -
- -
- 158,922
- -
- -
- 169,373
3 Interbranch and suspense account
- -
- -
- 987,179
- -
- -
- 2,339,852
200,067,145 12,270,992
4,108,407 1,976,033
22,668,862 242,680,473
192,809,894 19,917,479
8,860,254 5,560,435
14,230,500 244,157,668
1 a. Required allowance for possible losses on earning assets
1,033,326 614,583
575,678 406,295
12,971,922 15,601,804
977,374 961,520
1,718,183 1,664,050
9,234,949 14,556,076
b. Required allowance for possible losses on non earning assets -
- -
- -
- -
- -
- -
- Total required allowance for possible losses on assets
1,033,326 614,583
575,678 406,295
12,971,922 15,601,804
977,374 961,520
1,718,183 1,664,050
9,234,949 14,556,076
2 a. Established allowance for possible losses on earning assets
1,318,189 614,583
575,679 406,295
13,057,595 15,972,341
977,660 961,520
1,718,183 1,664,050
9,693,620 15,015,033
b. Established allowance for possible losses on non earning assets -
- -
- -
258,798 -
- -
- -
2,030,018 Total established allowance for possible losses on assets
1,318,189 614,583
575,679 406,295
13,057,595 16,231,139
977,660 961,520
1,718,183 1,664,050
9,693,620 17,045,051
3 Value of banks assets pledge as collateral :
a. To Bank Indonesia
- -
b. To others
- -
4 Percentage of small scale business credit to total loans
4.69 4.63
5 Percentage of small scale business credit debtors to total debtors
38.12 35.49
6 Percentage UMKM to total loans
11.62 10.55
7 Percentage of UMKM debtors to total debtors
41.59 39.34
Include Government Recapitalization Bonds The Calculation of allowance for possible losses on earning assets should be provided on the principal after deducting by collaterals.
No allowance for posible losses is required for certificates of Bank Indonesia, placements with Bank Indonesia and government recapitalization bond. LOSS
DOUBTFUL CURRENT
TOTAL CURRENT
DOUBTFUL LOSS
September 30, 2006 September 30, 2005
In Millions of Rupiah
No DESCRIPTION
B A N K TOTAL
TOTAL
87
Hedging Others
Receivable Payable
A. Exchange Rate Related
1 Spot
- 431
- -
- 2
Forward -
748,034 3,455
5,088 -
3 Option
a. Purchased -
- 216
5 -
b. Written -
- 9
17 -
4 Future
- -
- -
- 5
Swap -
6,476,682 358,773
22,277 -
6 Other
- -
- -
- B
Interest Rate Related
1 Forward
- 1,918
710 1,208
- 2
Option a. Purchased
- -
- -
- b. Written
- -
- -
- 3
Future -
- -
- -
4 Swap
- 14,307
- 14,307
- 5
Other -
- -
- -
C Other
- -
- -
- TOTAL
363,163 42,902
Contract Value Netting Agreement
As of September 30, 2006 BANK
In Millions of Rupiah
Contract Market Value Derivative Receivable
Payable NO
TRANSACTION
I. COMPONENTS A. CORE
CAPITAL 21,705,999
21,210,657 1.
Paid-Up Capital 10,159,165
10,116,800
2. Disclosed Reserves
a. Agio 6,025,803
5,999,350 b. Disagio --
- -
c. Shares Option 170,647
10,107 d. Donated Capital Additional Paid-In Capital
- -
e. General and Appropriated Reserves 2,575,369
2,560,285 f. Previous years profit after tax
1,917,302 1,541,204
g. Previous years losses -- -
- h. Current year profit after tax 50
752,690 837,542
I. Current year losses -- -
- j. Differences Arising from Translation of Financial Statements
in Foreign Currencies 1 Positive Adjustment
105,023 145,369
2 Negative Adjustment -- -
- k. Funds for Paid-Up Capital
- -
l. Decline in Value of equity participation in Available for Sale Portfolio -- -
- m. Differences Arising from Restructuring of Transaction among Entities
under Common Control -
-
3. Goodwill --
- -
4. Differences arising from assets and liabilities valuation due to Quasi
Reorganization -
- B.
Supplemental Capital Max 100 of core capital 8,516,829
8,603,749
1. Reserve for Premises and Equipment Revaluation 3,046,936
3,046,936 2. Differences Arising from Assets and Liabilities Valuation due to Quasi
Reorganization -
- 3. General Reserves of Allowance for Possible Losses on Earning Assets
max 1.25 of risk weighted assets 1,278,189
977,660 4. Loan Capital
- 83,349
5. Subordinated Loans max 50 of core capital 4,191,704
4,495,804 6. Increase in Value of Equity Participation in Available for Sale Portfolio 45
- -
C. ADDITIONAL SUPPLEMENTAL CAPITAL FULFILLING REQUIREMENT
- -
D. ADDITIONAL SUPPLEMENTAL CAPITAL ALLOCATED TO ANTICIPATE
MARKET RISK -
- II. TOTAL CORE CAPITAL AND SUPPLEMENTAL CAPITAL A+B
30,222,828 29,814,406
III. TOTAL CORE CAPITAL,SUPPLEMENTAL CAPITAL, AND ADDITIONAL SUPPLEMENTAL CAPITAL ALLOCATED TO ANTICIPATE MARKET RISK
A+B+D 30,222,828
29,814,406 IV. INVESTMENTS IN SHARES OF STOCK --
2,129,704 2,031,123
V. TOTAL CAPITAL FOR CREDIT RISK II-IV 28,093,124
27,783,283 VI.TOTAL CAPITAL FOR CREDIT AND MARKET RISK III-IV
28,093,124 27,783,283
VII.CREDIT RISK-WEIGHTED ASSETS 110,392,786
117,497,301 VIII.MARKET RISK-WEIGHTED ASSETS
2,712,591 3,102,171
IX.ESTABLISHED CAPITAL ADEQUACY RATIO FOR CREDIT RISK V : VII 25.45
23.65 X. ESTABLISHED CAPITAL ADEQUACY RATIO FOR CREDIT AND